Tax credits to be scrapped as claimants sent urgent message

DWP says people must act when important letter drops on the doormat

Households who receive tax credits are being reminded the benefit will soon be scrapped. They will need to take action when they receive an important letter in the post.

Tax credits will be axed from April 2025 but claimants will receive migration notices in the post before then. When they arrive, people will have three months to apply for Universal Credit (UC), the new benefit they are being moved over to.

Some claimants may have already been sent migration notices, while others will get them over the coming weeks. Households are being told they don't need to do anything until they receive their migration notice.

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Tax credits are among six 'legacy' benefits being phased out by the Government and replaced with UC. It represents a huge overhaul of the benefits system. Other legacy benefits ending include Housing Benefit and income-related Employment Support Allowance.

Six months ahead of tax credits closing, the DWP said: "DWP is urging tax credit customers to respond to their Universal Credit migration notices so they continue to receive benefits. Anyone affected will be sent a ‘migration notice’ by DWP to apply for Universal Credit as the department continues to transition over a million claimants on legacy benefits to Universal Credit.

Sir Stephen Timms, minister for social security and disability, said: "Having three months to make a move may feel like a long time but life can often distract you elsewhere. For the best chance to secure your benefit entitlement don’t delay with responding to your migration notice.

"We are committed to ensuring a smooth transition and customers will have the full support of DWP staff to help manage this change."